Understanding Mortgage Insurance: Your Options Explained

Dean Garrett • Apr 02, 2024

As your trusted Mortgage Professional, I'm here to ensure you're fully informed about protecting your mortgage and your family's financial future. You can’t buy Life Insurance when you need it! You need to plan and invest in your family's security now. Don’t buy Life Insurance from your Bank. It can’t move with your mortgage and will cost you much more.

Let's dive into the world of mortgage insurance and explore your options.

Manulife Mortgage Protection Plan (MPP)

MPP is designed to safeguard mortgage holders and their families in the event of an accident or health issue. While it's not mandatory, as your mortgage broker, I'm obligated to offer this product to ensure your peace of mind.

Here's what you need to know:

Underwritten at application: Expect a call from an MPP representative within 10 days of completing the application.
Two crucial questions: Consider whether you have adequate life insurance coverage and whether your disability plan is sufficient to cover mortgage payments and living expenses in case of illness or injury.
Key features: Enjoy a 60-day refund option, portability between lenders and properties, and the flexibility to adjust premiums based on mortgage changes.

Better Mortgage Insurance:

While banks offer mortgage insurance, there are alternative options worth exploring. Better Mortgage Insurance offers smart, flexible solutions tailored to your needs:

Coverage flexibility: Choose from coverage terms ranging from 15 to 35 years with life insurance coverage up to $4,000,000.
Additional protection: Options include disability insurance coverage up to $3,500 a month and critical illness coverage up to $25,000.
Premium guarantees: Rest assured knowing that premiums will never increase, and coverage stays with you regardless of where you bank.

Why Choose Mortgage Insurance?

Your home is your biggest investment, representing your retirement fund and estate. By securing adequate mortgage insurance, you protect it from unforeseen circumstances, ensuring financial stability for you and your loved ones.

Let's Connect

If you're considering mortgage insurance or want to explore comprehensive life insurance options, I'm here to help. Contact me today to discuss your unique needs and find the right protection for your mortgage and your future.

Dean Garrett

Mortgageminder - Your Mortgage Professional

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Dean Garrett

Mortgage Professional

What You Need To Know About Co-Signing A Mortgage

By Dean Garrett • 09 May, 2024

So you’re thinking about co-signing on a mortgage? Great, let’s talk about what that looks like. Although it’s nice to be in a position to help someone qualify for a mortgage, it’s not a decision that you should make lightly. Co-signing a mortgage could have a significant impact on your financial future. Here are some things to consider. You’re fully responsible for the mortgage. Regardless if you’re the principal borrower, co-borrower, or co-signor, if your name is on the mortgage, you are 100% responsible for the debt of the mortgage. Although the term co-signor makes it sound like you’re somehow removed from the actual mortgage, you have all the same legal obligations as everyone else on the mortgage. When you co-sign for a mortgage, you guarantee that the mortgage payments will be made, even if you aren’t the one making them. So, if the primary applicant cannot make the payments for whatever reason, you’ll be expected to make them on their behalf. If payments aren’t made, and the mortgage goes into default, the lender will take legal action. This could negatively impact your credit score. So it’s an excellent idea to make sure you trust the primary applicant or have a way to monitor that payments are, in fact, being made so that you don’t end up in a bad financial situation. You’re on the mortgage until they can qualify to remove you. Once the initial mortgage term has been completed, you won’t be automatically removed from the mortgage. The primary applicant will have to make a new application in their own name and qualify for the mortgage on their own merit. If they don’t qualify, you’ll be kept on the mortgage for the next term. So before co-signing, it’s a good idea to discuss how long you can expect your name will be on the mortgage. Having a clear and open conversation with the primary applicant and your independent mortgage professional will help outline expectations. Co-signing a mortgage impacts your debt service ratio. When you co-sign for a mortgage, all of the debt of the co-signed mortgage is counted in your debt service ratios. This means that if you’re looking to qualify for another mortgage in the future, you’ll have to include the payments of the co-signed mortgage in those calculations, even though you aren’t the one making the payments directly. As this could significantly impact the amount you could borrow in the future, before you co-sign a mortgage, you’ll want to assess your financial future and decide if co-signing makes sense. Co-signing a mortgage means helping someone get ahead. While there are certainly things to consider when agreeing to co-sign on a mortgage application, chances are, by being a co-signor, you'll be helping someone you care for get ahead in life. The key to co-signing well is to outline expectations and over-communicate through the mortgage process. If you have any questions about co-signing on a mortgage or about the mortgage application process in general, please connect anytime. It would be a pleasure to work with you.

Get Protection From A Pre-Approval

By Dean Garrett • 02 May, 2024

There is no doubt about it, buying a home can be an emotional experience. Especially in a competitive housing market where you feel compelled to bid over the asking price to have a shot at getting into the market. Buying a home is a game of balancing needs and wants while being honest with yourself about those very needs and wants. It’s hard to get it right, figuring out what’s negotiable and what isn’t, what you can live with and what you can’t live without. Finding that balance between what makes sense in your head and what feels right in your heart is challenging. And the further you are in the process, the more desperate you may feel. One of the biggest mistakes you can make when shopping for a property is to fall in love with something you can’t afford. Doing this almost certainly guarantees that nothing else will compare, and you will inevitably find yourself “settling” for something that is actually quite nice. Something that would have been perfect had you not already fallen in love with something out of your price range. So before you ever look at a property, you should know exactly what you can qualify for so that you can shop within a set price range and you won’t be disappointed. Protect yourself with a mortgage pre-approval. A pre-approval does a few things It will outline your buying power. You will be able to shop with confidence, knowing exactly how much you can spend. It will uncover any issues that might arise in qualifying for a mortgage, for example, mistakes on your credit bureau. It will outline the necessary supporting documentation required to get a mortgage so you can be prepared. It will secure a rate for 30 to 120 days, depending on your mortgage product. It will save your heart from the pain of falling in love with something you can’t afford. Obviously, there is nothing wrong with looking at all types of property and getting a good handle on the market; however, a pre-approval will protect you from believing you can qualify for more than you can actually afford. Get a pre-approval before you start shopping; your heart will thank you. If you’d like to walk through your financial situation and get pre-approved for a mortgage, let’s talk. It would be a pleasure to work with you!